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How Much Should You Pay for an Extended Auto Warranty

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When to Buy an Extended Auto Warranty Plan

 

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Auto Warranty in Colorado

Colorado MapColorado residents have many options when it comes to choosing an auto warranty company. Experts recommend shopping around before committing to any one company or policy. Although many dealerships offer auto warranties, a buyer may find a better deal through their insurance company. In a survey of those who purchased auto warranties, the most satisfied were those who bought a warranty that was backed by the auto-maker. There are many choices a buyer can select from.

When purchasing auto warranties, the best decisions are made when the buyer is not feeling pressured. Dealers often try to sell the convenience of including the coverage in the new car loan, but that means the buyer is paying interest on coverage that is already included in the factory warranty. A buyer can purchase extended warranty coverage after purchasing the car, if he or she feels that is necessary.

Many Colorado residents don't realize that they can bargain for a better price for their auto warranty. In a survey done of car owners who had purchased auto warranties, only a third of them tried to negotiate a better price. Most of them who did ask for a better deal were successful, saving about $325 per year. Often, buyers are under the impression that the auto warranty is a fixed price. This may not be the case and a better deal can be obtained.

One of the biggest mistakes made when purchasing an auto warranty is not reading the small print. Rather than taking the dealer's word for it, a buyer needs to read the contract carefully and understand the provisions before signing. A buyer should be able to explain to their spouse what is covered, as well as where to take the car for authorized service. Some warranties have restrictions on approved shops. The convenience of this should be carefully considered before making the decision to purchase the warranty.

Auto warranties should be carefully considered before purchasing. If purchased wisely, they can save the car owner thousands of dollars.

 

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